Archives for May2014

Why trade binary options you ask, well for one it is exciting, new and easy to learn. You will find a lot of Binary options buying and selling platforms to choose from but while they all may look the same, you want the one with the best percentage payout, and also finding an accredited Binary options broker is important as well. The best thing about an accredited broker is that they want to safeguard your interests. Our site will try and offer you the best advice possible to help you in choosing the right Binary options broker, and teaching you the easiest way to invest your hard earned money.

Binary trading and the number of people who trade in Binary options is growing more and more each day due to its rapid investment payout. Due to new binary options online sites growing daily, their registration offers to join with a Binary options broker are becoming more and more attractive to new and old traders. As the competition for the new Binary options sites grow, it is hard for new comers to decide whether they want to join in this new form of investment. If you are one of the people unsure of why you should try binary options online, we have stated below some of the reasons most people new to the binary options have been joining this new trend daily.

Why should you start to Trade Binary Options?

There is not a lot to learn when you are trading in Binary options, but when you see how easy it is you will understand why more people are trading in Binary options than on the normal market. In any new venture, you will find for beginners there are a lot of advantages like start up bonuses and now more percentage payouts. Many people joining with Binary options are now seeing what it is like trading online, and these new Binary options members prefer trading with Binary options online than through the stock market. However this really does depend on each individual person’s type of trading preferences.

Your Trading Background

An important factor when trading Binary options is your background, as each person has different experiences to tell. Lack of experience for new traders in the Binary options industry may seem to have more disadvantages because they do not know what they are doing, but this is due to experience as well. Once you read and learn about how Binary options trading works, you will find it much easier to start after reading our site, than jumping in with both feet without learning about Binary options first. For example, a person who has been trading in the stock market for years will have no problems moving forward with Binary options. We have many areas to our site that will show you how easy it is to work with Binary options and make you see how easy it truly is to trade with binary options.

Is it good money?

If you have ever been involved in the investment market such as stocks, commodities and currency or index trading, then you will have seen that one of the only ways to get a profit of around 70%-85% is in trading with Binary options. If you have a good knowledge of how to pick an asset to invest in, then you can make some serious earnings from Binary options, which draws people to them daily. Binary options success only depends on the closing price of your asset at the time of its expiry, and that you have chosen the right movement on its price which is either higher or lower. Binary options do not rely on luck, what you need here is to study the behavior of the asset that interests you. With binary options, you do not need the knowledge of an analyzer or forecaster to turn your investment in binary options into a profit.

The only knowledge you really need is to be able to predict the direction in price that your chosen asset will expire on. If you take time to watch the asset you want to invest in and can truly predict the way the price will go, then you could be like the many others trading in binary options and earning yourself extra money weekly. This draws many people to trade Binary options as in the morning you can see where certain assets are going and start trading over breakfast.

Is the Risk involved in Binary Options Lower than the regular markets?

Most Binary options brokers now offer up to 15% safety net return on an out of the money trade (prediction of price movement is wrong), which makes it more intriguing for people to start trading in binary options. This meaning that if you buy a Call (asset money goes up) or Put (asset money goes down) Binary options; you are still awarded the reverse option automatically, which protects 15% of your overall investment. An example of this 15% return is explained below.

If you decide to invest $5000 in a certain asset which your Binary options broker offers you 70% return and your chosen asset is successful upon expiration, then your $5000 investment has now become $8500. If your investment turns out to be wrong then your 15% safety net still leaves you with $750 from your original $5000 investment. Pretty good offer as you will not lose all your investment like in regular markets. This draws a lot of new comers to the Binary options trading due to the fact that you choose the price you are willing to invest in a certain asset. This makes it more appealing due to the fact you won’t lose your shirt as long as your prediction on your Binary options trade is correct.

Do you need to be a financial wizard?

As mentioned earlier, you do not have to be a financial wizard to trade in Binary options. You do not need to be a financial wizard like most new comers to binary options believe to be true. This might be true with other investment markets, but this is not true with binary options. It is all to do with predicting the direction of the market, and nothing else. Your main obligation is to read up on the asset you wish to invest in, this is either through reading financial news reports, listening to stock reports, or just watching the reports on your daily news channel. Binary options is the easiest online market to deal with, all you really need to do is click on call (asset price will rise) or Put (asset price will drop) and that’s all it takes. So you can see that you do not need to be a financial wizard to start making some money with Binary options, all you need is the right asset and the right prediction.

Where to Start

If you are new to Binary options, and are reading this site, then you have already taken the first step into this profitable new venture. Your next step of course is to learn how to trade Binary options, and remember to have clear objectives and a good working plan ahead of you. This will help with the likelihood in making great profits from binary options trading. Your next step is finding the right online Binary options broker and predicting the right outcome of your asset. This is why Binary options are now taking on more and more clients daily, because it is that simple to learn and trade. Our job is in helping you understand how the Binary options world works and make your new profitable journey easier.

Your Concentration while trading Binary Options

Your concentration is also a factor in trading Binary options as you need a high level of concentration and awareness to the current markets. Learning the basics to Binary options is a must and easy to do. That is why most new people to Binary options are trading daily and enjoying their profits. Another reason more people trade binary options, is that they know they can sit at home, office or even while traveling to work and concentrate online to their trading asset. Always make sure you are in the right frame of mind when trading as any interruptions can have you making the wrong prediction.

One Hour Expiry Option

If you ask anyone who is trading in Binary options online, they will tell you the best way to trade is with the one hour expiry time. This is one of the best ways to trade with Binary options due to the fact that the shorter the time, the less chance your asset will fluctuate. So now you know that unlike regular market trading, you do not have to wait a month or even years for your investment to make you money, it is within one hour that you could change your financial situation. This makes the Binary options trading very attractive to people trading online, and making profits hourly.

Are there binary option Bonuses?

Binary options broker’s online offer rewards to their members who trade with them with some extra cash bonuses. This is when you need to search for the right Binary options broker online and see what bonuses they offer to new and old members. Also their payout percentage is quite important as well so you know you are making a good profit with your investment.

For example, some Binary options brokers may offer a new member to their site an extra $20 for every $100 deposit made to their account. Some Binary option broker’s offer weekend and holiday bonuses and even promotional emails offering personal offers to the account holder. Some binary options brokers may offer better rates for a limited time as well, making them more attractive to new Binary options investors.

Binary Options Broker’s free signup

Another big reason for people joining Binary options is for the simple fact of no hidden charges for trading with a binary options broker. If while looking for a binary options site and you come across one asking for a registration fee, they are not the site you want. With binary options you do not pay any commissions or registration fees, and no site should ask you to pay them either. Just remember nobody takes any of your earnings they are yours to withdraw whenever it suites you. The only money you put into a Binary options broker is the money you are planning on trading with.

Another reason for many people preferring to trade with Binary options online is the fact that they can trade Binary options where ever wifi is available. You could start your day travelling to work online watching and trading and even be in a profit before arriving at your destination. Most people like the fact of sitting at home watching the financial channels and investing in the comforts of home with no distractions.

So we hope everything we have told you so far will help you make your decision on Binary options trading a bit easier. Spend some time reading through our site and watch how quickly you pick up how easy Binary options truly are. You will be amazed at how many people you will come across already trading with Binary options, or just by telling a few friends you will all be enjoying some extra funds you never knew were easy to come by. Binary options is the new trading market online making life a bit easier for everyone struggling through the recession as you can even make a few dollars just from investing as little as $10 when you can spare the extra dollars to trade with. Binary options are not a trading vehicle to move away from or be scared of investing your hard earned money on. Binary options are easy and really all you need to do is your homework on your asset and place the right funds on your chosen asset. The last thing to remember is that Binary options is not an online casino, you must read the way to invest sections and choose the right way your asset will move within the expiry time, and remember to only invest funds you can afford to invest.

If you have been trading in the world of binary options, but are still not getting the success you want, then you should read every single word of this article.

So just why is it that people fail in the world of binary options trading? Surely it can’t be down solely to bad luck…can it?

The simple answer is no. You see, the main reason why people fail is because they keep committing the same mistakes on a regular basis. Once they eliminate those mistakes, then they start to see success.

Do you want to stop losing money and start raking in the cash? If so, then you need to be aware of these 3 mistakes that the majority of binary options traders make…

Not having a plan

Success in binary trading is all about having a long-term plan and then sticking to it. If you spend all of your time chasing that one big trade then you will ultimately meet with failure.

Instead, visit an authority site such as Binary Trends and then find a successful plan that you can implement to start making money. Keep focused on your plan at all times, and don’t allow shiny objects to throw you off course.

In only a few short months you will be a successful trader and making a nice income for yourself on a regular basis.

Not being patient

Another binary options trading mistake that many people make is not being patient. In today’s world, patience really is a virtue, and good things come to those who are prepared to wait.

Unfortunately, most traders want overnight riches into their bank account, and when it doesn’t come they start to get frustrated.

Don’t fall into this way of thinking. Instead, be prepared to look at binary options trading as a long-term activity, where you will experience both success and failure, but if you keep on going even through the hard times then you will be a real winner.

Not being prepared

Being prepared when you sit down at your computer is a crucial part of being successful in binary options trading. This means that you should be looking over your strategy the night before you begin trading, as well constantly analyzing the markets so you can make the best decisions.

Also, work on clearing your mind before you begin trading, and make sure you are not thinking about other things when you should be concentrating at the task in hand.

Another factor in the selection of a broker is to look at their market capitalization. It is always prudent to ensure that the broker shortlisted by you is well capitalized to minimize the risk of losing all funds if the broker does go bankrupt or if you have placed a big winning trade. Well when a company is regulated you know that they are well capitalized, they have to have millions of dollars in their accounts to even apply for regulation. Previously, firms with as little as $100,000 operating in the U.S led to many of them having issues with their clients’ money when the market tanked. However, recent regulations have been tightened in the U.S. that requires brokerage firms to have at least $20 million dollars in capitalization in order for them to operate. This requirement is monitored by the National Futures Association (NFA) in conjunction with the Commodity Futures Trading Commission (CFTC). To check whether a firm is sufficiently capitalized, you can refer to the CFTC website. They have a list which shows the capitalization of their members that is updated on a monthly basis. However, it should be noted that many Forex and binary option firms have difficulty in meeting this requirement and are forced to relocate their operations outside of the U.S to Europe.

Nevertheless, as retail trading in the financial market is becoming more popular and legitimized many countries in the EU are also following the footsteps of the U.S in terms of capitalization. In this respect, capitalization is becoming less and less of an issue which a trader has to worry about. The reason for this is that many binary options brokers are hedging their risk or underwriting their risks with third parties. This means that even if they lose out on an elephant trade they can afford to return your profits. Some brokers also take the other side of a very large trade by trading it at another brokerage house. This guards the company from losing too much in one trade.

It’s a good idea to ask the brokerage you are trading with about their capitalization and also whether they hedge themselves or are underwritten by third parties.

Ensuring the capitalization of the firm is one very important factor to consider when doing your broker research and selection.

4. Trading Platforms

There are many types of trading platforms on the market. With binary options most of them seem to be web-based. A lot of them are white labels of other companies platforms where they have taken their own branding such as logos and placed it on the platform ie. SpotOption and Tradologic platforms. That’s ok it just means they don’t have their own proprietary platform.

So let’s break it down.

Binary brokers offer different types of vehicles on their platforms. The classic option is UP/DOWN or PUT/CALL. This is the platform you’ll see offered by all the companies. Very simply you choose the market movement at a set expiry and whether the asset will have travelled up or down at that expiry. What to look out for here? Ideally you will have a chart available to look at before you choose the asset type. This will make your task easier and quicker. It’s the difference between:

Web Based or Non Web Based Platform

So what is the main difference between a Web Based Platform and a Non Web Based Platform? A web based platform is totally independent of the computer which a trader is using to trade with. Non Web Based Platform normally requires users to download a piece of software before they can start trading. What this mean is that a trader will need to trade from that specific computer. If the computer that a trader is using is a desktop, this would mean that the trader cannot trade from anywhere in the world. In other words, he is not mobile.

Mobile trading

Some of the better brokers are even offering mobile trading types where you can open their platform from your iPhone or SmartPhone using a downloadable app. Your account opens so you can keep an eye on your open positions, execute a trade and even deposit funds.

As trading in the financial markets becomes more popular, it is part of the natural progression for products and offerings to evolve. New virtual markets are created. When new financial markets evolve too quickly, sometimes it’s hard to keep track of the sustainability and reliability of those products. Binary options is just such a market. The emergence of binary options is a phenomenon in the same way as Forex was- a true market explosion that is nowhere near maturity. Believe it or not, binary options have only been around since 2008 when the Securities and Exchange Commission (SEC) approved this form of online trading.

It goes without saying, that with the emergence of new markets come handfuls of new brokers offering the trading product. Often unregulated these binary options brokers are an unknown quantity. If you value your money then you would be right to be wary of the unknown. If you are new to trading in the financial markets, this can especially lead to confusion. Binary options trading can be extremely rewarding for professional traders and newcomers, however, how do you know which broker to deal with and who can you trust with your money? What trading platform should you be using?

These are some of the basic questions that you will need to confront before you take the plunge in the exciting world of binary options trading. Adding to this confusion is the amount of information or misinformation that can be found on the internet posted by disgruntled traders or even competing brokers! So how does one distinguish a reliable broker from hundreds of other firms that are out there on the web?

In this guide for selecting the right broker for your trading activities, we’ve identified various factors that a trader should consider before contemplating which broker to trade with. Some of these factors are:

Regulations

Company Capitalization

Trading Platforms

Broker Types

Customer Services

2. Regulation

In the Forex Market, for a lot of traders, trading with a regulated broker is often the most important factor when opening a trading account. By the way, some markets or regions are unregulated meaning you may be better off with an unregulated broker if you are based in those markets. Sometimes, like in the US with their strict NFA regulation, trading can be no fun at all. Leverage offered is very low and highly regulated brokers can offer very low spreads. Also, just like in the case of MF Global who recently were all over the news, being regulated does not necessarily guarantee the safety of your funds. Nevertheless, how a broker is regulated depends on where it is registered and where its base of operation is. This can be a complex issue especially when you are dealing with a global market. The financial market is largely an Over The Counter (OTC) market and this makes it difficult to subject a particular company to a specific set of regulatory framework.

Although this is a complex issue, one mustn’t ignore the importance of having a financial regulatory framework governing the operation of a broker. This is because most retail traders or investors are unlikely to conduct their own research into the feasibility of investing in a particular investment vehicle. With the fees or commissions that are paid to the brokers by the investors, many investors actually feel that this is part of the broker’s obligations. In short, the broker is supposed to act in the best interest of their clients. However when the broker is also the Market Maker, ie. taking the other side of the trade, this isn’t always the case.

In the United States (U.S.), brokers are self-regulated by the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization of the brokerage industry and the Securities and Exchange Commission (SEC). For those brokers that are based in the United Kingdom (UK), the task of regulating brokers falls under the ambit of the Financial Services Authority (FSA), a quasi-judicial body. Individual member states of the EU have their own respective regulatory bodies that follow the recommended legal framework standards established by the European Union. ֲ These are the main regulatory bodies that monitors and ensure that brokers are held accountable to a fiduciary standard.

In a perfect world, the above scenario is supposed to be the case. Unfortunately, the global financial crisis that resulted from the collapse of the U.S. subprime mortgage market in 2007/2008 is a stark reminder that financial regulations are not everything for the protection of investors.

Binary options is different. Every week there are ten new brokers popping up. 95% of all binary options brokers are unregulated. The regulated ones are usually based in Cyprus and so regulated by Cysec with registered offices in the BVI. So far I have only come across a handful of regulated binary options brokers in the whole market and those are not necessarily the best companies I’ve found to trade with by far. So it seems that in this market, regulation is not one of the governing factors to choosing your broker. So what is?

To answer this question we must first categorize the 3 most popular ways to gamble.

Casino Fixed Odds Games (such as roulette)

Sports Betting (such as betting on a NFL team)

Poker (such as Texas Hold’em)

Casino Games

Casino games are nothing like trading binary options. Taking positions in the market vs betting on a roulette is not the same. In casino games, you get a return based on the probability of an event and it is always at a disadvantage to the player/trader. The house has the edge and the house always wins in the end.
Sports Betting

Sports betting and especially with the introduction of live betting on games via Internet, one will find several similarities. In binary options trading, you can take a position (similar to placing a bet) that a stock will go up or down. This is similar to sports betting. Let us take a soccer game as an example where you can place a bet saying: Team A will win with more than 1,5 goals over team B. If team A wins with 2 goals or more the bet is won. If they don’t, you lose. There are only two outcomes similar to a yes-or-no position in binary options. In football, the experts will study both teams’ performance leading up to the match and also look at any historical data available which holds significance to the game.

For example: if one team has won the last 10 matches out of ten it is believed that it has a superior team and strategy. If the two teams have played a draw the past five times, smaller things are taken into consideration such as: are there any changes since then? Are there any players with injuries? And so on. In sports betting, if you know something that the majority of the market does not know (yet) you can leverage on that information. You need to act quickly by placing a bet and it is crucial to do this before the info you obtained becomes general knowledge. In sports betting, it is also possible to place a bet and should the odds increase in your favor, you can sell the bet back and make a profit from the difference between the two odds.

This is exactly like trading stocks where you can buy shares, and once they increase in value you sell or the opposite scenario where you shorten stocks and once they start dropping you cash in. Let us explain an example of how to legally get insight and possible benefits from this when trading binary options. A high-end clothing line is selling its jeans for $1000 a piece. People are paying a price making the company valuable and highly profitable due to its extraordinary margins. If you notice these brands in outlets and low-end clothes stores it is because they are selling these jeans to these stores to keep the sales numbers high and making the books seem better than they are. These low-end stores buys the jeans from the factory at the same price as the high-end shops but they sell them for way less.

When the consumers discover that the $1000 jeans can be bought for $200 the demand decreases, since nobody is willing to pay $1000 for a pair of jeans they can get around the corner for only $200. When it becomes a known fact, the sales will plummet as will the shares. If the news hits Wall Street before the consumers realize what is going on, the shares will start to plummet since investors and shareholders lose faith in the company, the brand and possibly the management. You can say that the price of the shares have been high due to fake expectations.

Estimate the Future

Nobody can predict the future. We can all speculate and try to predict it based on knowledge, feel and experience but you can never know all the variables. The reason why binary options are more interesting and profitable than sports betting is that you are betting against the market. You can find a nice market and gain an edge. Winning punters get banned from betting at bookmakers or limited to bet very small amounts as the bookmakers way of saying “Go away! We do not want your action”. In binary options you are not typically betting against ‘the house’. The brokers are simply buying and selling your positions by trading with others. If two people place a bet, one bet call and one bet put, the broker has no risk. For you to take a negative position on the Apple Inc shares, somebody needs to be willing to take the opposite position. If the broker is not willing to take a too high exposure on a position, they can go and buy the opposite position in the market which means they will profit with a smaller margin but also take very little risk.

Poker

Poker is by most poker players considered to be a skill game. On the contrary, most governments label it as gambling. Poker and binary options have several similarities. A skilled poker player has an edge vs. a newcomer to the game just like a skilled trader has an advantage over a random person on the street. Short term, the inexperienced can be just as profitable as the skilled trader/player and in some cases even more profitable. It is hard to argue that becoming an experienced trader and obtaining knowledge about different strategies while possessing a general understanding of the game/market will not have a positive impact on your ROI. Short term, luck does not make one resilient in the market long term.

Online Binary Options Trading Platforms and Poker Rooms

In poker and binary options trading you do not necessarily play against the house. On a small scale you do; on a large scale you do not in binary option trading. The ‘house’ takes a small fee of your trades. The brokers naturally need to pay its staff salaries, marketing is costly and the online binary options brokers are being scrutinized by governed financial institutions securing the companies are following the laws and regulations. We highly recommend that you only deposit with brokers that you find listed on our site. This will secure safe payouts and should you face any difficulties we can assist you.

Analyzing Patterns

Poker involves a high degree of analyzing peoples´ betting patterns when doing an opponent check, bet, raise or fold in certain situations. When you start picking up a pattern, you gain a financial edge and stand to increase your profit rate. Keep in mind you will always make mistakes regardless how savvy you become. Another important factor is that in poker, as well in the stock market, people can get distracted by their emotions. They hang on to a hand that looked good 5 minutes ago or keep shares because they have a personal relation to the company beyond pure and simple profit making. On the contrary one might possess knowledge or have a secret strategy hence buying when then the most obvious move would be selling and cut the losses. You never know for sure. That is the beauty!

Do you know what is the most dangerous aspect of binary options trading? The answer will surprise you.

I’m going to tell you in a moment, but I first need to ask if you have started working on your trading business plan yet?

As mentioned in my last blog post, having a disciplined, rule-based trading plan for your options trading should be the first thing you do before investing a single dollar in your trading account.

So, if you haven’t yet started writing out all the details I shared with you in my last blog post, please put that on the top of your “to do” list.

Look In The Mirror

Now, about that biggest danger of binary options trading… Do you know what it is?

Look in the mirror and you will see the answer. It’s yourself!

More specifically, it’s your personal human emotions.

There are three psychological states of emotions that drive most individual decision making in binary options trading.

They are…

Greed, Fear, and Regret

Since the forex market is made up of individual human beings who tend to act in similar manners, a group is formed.

It is only the group’s opinion that matters during a trend, but it is the individual trader’s job to identify the subtle clues as to when a market is about to shift direction.

The clues are there, but they are subtle. An awareness and detailed understanding of these emotions is what keeps the astute technical trader out of trouble by providing a means to identify individual weaknesses.

Let’s take a closer look at these emotions, and provide examples of how they influence a trader’s ability to consistently make money.

Greed

Greed is commonly defined as an excessive desire for money and wealth.

In trading terminology, it can specifically be defined as the desire for a trade to provide an immediate and unrealistic amount of profit.

When greed sets in, all a binary options trader can focus on is how much money they have made and how much more they could have made if they had risked a larger amount of capital on the trade.

Binary Options trading is the new kid on the block with the block being the world’s financial trading arenas. Binary Options give traders who do not consider themselves experts on the most complex financial instruments, or who do not have the means to invest thousands of dollars in their first trade, a feasible option. With Binary Options, you can benefit from significant profits, while taking advantage of both a minimal investment as well as instant gratification.

Because this industry is relatively new, we thought we would give you the information you need to get started making money with Binary Options. In addition to the information below, you can also peruse our binary options brokers reviews for the latest information about the best binary options brokers.

A Beginner’s Guide to Binary Options Trading

1. What is Binary Options trading?

Binary options trading is an up and coming financial trading method in which there are only two possible outcomes, hence the name Binary. The premise of Binary options trading is that you, the trader, guesses if the asset will increase or decrease in value by the time the position expires. If you were right, you take away the profit and if not, you lose your investment minus a small percentage that remains in your account.

2. What does it mean for the average trader?

This new trading method provides traders with instant results and gratification. Binary options trading is mostly conducted in a Web based environment so you can do it from any computer connected to the internet, PC or Mac. The trading is much simpler and more straight forward than any other kind of financial trading.

The down sides of Binary options trading, like other markets, are that without sufficient preparation in the form of research, you can lose money. With the fun experience binary trading provides, many people trade it like it is a casino and that canbe dangerous.

5. What are the risks?

Contrary to other markets, the risks in Binary options trading are actually pretty low and completely depend on you. You know from the get-go exactly how much you want to invest and you cannot possibly lose more than that.

6. How do I know which broker to use?

Just like in other markets, you want to find a broker that is reliable, dependable, and offers superior service. The binary broker industry is in its infancy but there are enough choices out there. A few things to look out for in a binary broker include responsive customer support, a user friendly platform, flexibility in the trading assets, and an easy to navigate website.

7. Is binary trading complicated?

The major advantage of Binary options trading is its simplicity. You are either in the money or out of the money. If you think the asset will go up, you select the Up arrow in most binary platforms. If you think it will decrease, select the down option and set your price. You can then see what the asset is doing in real time and wait till the position expires. It does not get much simpler than that.

Binary options have for the inexperienced trader a special fascination. Thanks to them, seemingly with ease can operate in the market. No wonder, since there are few concepts, which must be mastered and the applicable strategies are also manageable. Nevertheless, you should keep a beginner to a few rules.

Below I would like to provide you with important tips with you on your way. Once you have your account open, you familiarize yourself with the trading platform. Patience and discipline are two essential properties in the trade of high-risk products. Once you have carried out its first trades, we also recommend getting out.

You will not escape cocky or mourn after winning. Sit down at the beginning of the day, the best a target income, what you want to achieve. Be realistic.

Manage your positions

Money management is a fundamental component of trading represents. We recommend a maximum of five percent of total capital to invest in one position. Therefore, if you have a 100-euro account, then you need to invest at the beginning to 25 percent of your total capital. As soon as you have more money, you should definitely upgrade to the five-percent rule.

Once you have earned a lot of money at some point, we recommend that you only 1-3 percent of your capital to invest. So watch the position size of your bankroll to us, you minimize the risk.Understand the binary options trading is not considered gambling. Once you do, you will lose.

In forums, you read already from adventurous strategies. If, for example, is wrong with a call option in the EUR / USD, then you buy a call again while doubling his bet. When trading binary options broker is permanently against you, and because it provides the courses, it also has a slight advantage.

Therefore, buy an option is not so easy because the next guru promises you the moon, but also analyse the charts.Use a decent chart program. Creating an account with a stockbroker is good. In this way, you can get the stored real time charts on all time levels.

Binary options are distinguished by the fact that at the end of the term of an option occurs when purchasing predetermined set of gain or loss. Since there are only two possibilities, one is often called a digital or binary “payment profile”: ONE or ZERO, gain or loss.

Usually, the premiums are paid at the expiration of the option in the money between 65% and 85%. The exact amount depends on both the underlying asset, the maturity and the particular broker. In the event of a loss, so the end of the option from-the-money will be withheld for most providers of the amount invested. Some brokers also provide loss protection, which pays up to 15% of the amount invested.What are the times when it is binary options trading? The term of a binary option is a key factor when it comes to whether an option in the-money or out-of-money runs out. The decision to call or put goes hand in hand with the decision over the term.

Both factors are the basis for the purchase of a binary option. With binary options, the payout rates are usually the same for all maturities. It does not matter if the running time of an hour or more weeks: The payment at maturity is equal to, if the option expires in the money. This “digital payment profile”, the risk profile of the investment can be clearly “slimmer” than make variable payouts.

Delivery times for binary options range from a few hours up to several months. With the right experience and knowledge can be generated in less than an hour very quickly a very high yield.

Underlying assets

What underlying securities are traded? Binary options are offered for a variety of underlying assets. Advanced traders will benefit from a wide range of underlying for options, since you can rely on a variety of current trends and developments. Nevertheless, even for beginners a wide range of different options is helpful as it in your particular field of knowledge can search for specific matching options out.

It is important not to lose focus. There are mainly four segments, which are operated by brokers / providers binary options: corporate stocks, commodities, indices and exchange rates.

How many different segments and underlying are offered in the individual segments in each case is different from broker to broker. Decide on an overall view of the broker platform, whether the offered portfolio including the general conditions sufficient to your needs.

Binary Options is often found under the name Digital options, digital options or Digitals. Financial trading options of this type are also called SPOT options. SPOT stands for Single Payment Options Trading options and features, which at maturity have a one-time, fixed or scheduled bank.By creating of a clear and simple structure, binary options are suitable for beginners as well as the professionals in the financial trading.

They can be realized with relatively low capital investment in the short-term high profits. In addition, binary options are paid at maturity cash. Profit retained broker and provider option the customer so well write directly to his account. By purchasing a binary option, the investor relies on a specific scenario. Enters this scenario, the investor will receive a pre-agreed profit.

This can for example look like this: The investor believes that the EUR / USD exchange rate exceeds the next 3 days 1.42. The broker offers the investor to a binary option at a price fixed by the broker and a well-defined premium payment. Does the scenario at the end of 3 days, the EUR / USD exchange rate is thus about 1.42, the broker writes the investor paying premiums immediately credit the account.

It is no required previous knowledge. 100% web-based trading! 24-hour support via phone, email and live chat! The best part is that there are no barriers to entry in the binary options trading. The Internet offers a variety of broker’s binary options. The registration of such a trading platform is usually straightforward and the registration and the deposit process often takes only a few minutes. The dealer should be well informed.

Many traders love digital options because they offer a number of advantages in their daily trading. More importantly, it is easy to use, because unlike traditional options for checkout, just a few clicks are needed, and with the maturity date of the option, the provider gains automatically charged with the account. On the other hand, binary options can be used a number of different scenarios.

Whether the company’s shares, stock indices, commodities or currencies: The dealer can customize the duration (hours, days, weeks or months) and its base value, and thus profit in different market environments. Even minimal price movements or even falling prices can be used for profit.